The market has already decided. There was a trend in the '70s and '80s towards holding monthly small events, often Quads (4-player round robins, grouped by rating, lowest section might have up to 7 players) or other one-day formats, low prizes or just trophies, low entry fees. It never drew the kind of numbers that would make the game grow.
Players follow the money. It's the only way to get the titled players out, but the chance of seeing/playing them brings out the amateurs too.
And what we are doing now is growing the game?
This player doesn't follow the money, and I know that I am not alone. There are people who come to my tournaments that have never been to tournaments before, specifically because they can afford mine. My tournaments aren't big, but they don't have to be. Lots of small tournaments would grow the game more effectively than a few large ones.
+1